EV Novated Lease Calculator Australia (2025-26)

From 1 July 2022, electric vehicles (EVs) provided through novated leases are exempt from Fringe Benefits Tax (FBT) if the vehicle price is below the luxury car tax threshold ($91,387 for fuel-efficient vehicles in 2025-26). This makes EVs significantly cheaper through salary packaging.

Savings depend on your income and the vehicle price. Typically, an EV novated lease saves $5,000-$15,000+ per year compared to buying privately, due to no FBT, pre-tax salary deductions, and lower running costs (electricity vs petrol).

From 1 April 2025, PHEVs are no longer a qualifying electric car for the exemption. PHEVs can remain exempt only if (a) their use was exempt before 1 April 2025 AND (b) there is a financially binding commitment in place before that date to continue providing the car for private use.

Yes. Even when FBT payable is $0, the employer must report the grossed-up notional taxable value on your income statement as a Reportable Fringe Benefits Amount (RFBA). The RFBA flows into income tests for the Medicare Levy Surcharge, HELP repayments, Division 293 super tax, Family Tax Benefit, Child Care Subsidy, spouse super tax offset and the Private Health Rebate — so a 'tax-free' EV can still push you into a higher MLS tier or past the $250k Div 293 threshold. The gross-up uses the Type 2 rate (1.8868 for 2025-26).

From 1 July 2025 the fuel-efficient threshold ($91,387) applies only to vehicles with advertised combined fuel consumption under 3.5 L/100 km — tightened from the previous 7 L/100 km. Most PHEVs and hybrids no longer meet this narrower definition, so they fall back to the lower $80,567 threshold. BEVs and FCEVs are unaffected.

If the vehicle price exceeds the luxury car tax threshold, FBT will apply to the entire vehicle value. The savings from salary packaging will still exist, but the FBT cost will significantly reduce the overall benefit.

Running costs typically include: electricity/fuel, comprehensive insurance, registration and CTP, scheduled servicing, tyres, and roadside assistance. All these costs come from your pre-tax salary, maximising your tax savings.